Small business group's report calls paid sick time in Massachusetts a job killer

(File Photo)According to the report by the National Federation of Independent Business, an increase in worker absences as a result of the new paid sick day benefit would translate to lost sales and production.

By Kyle Cheney, STATE HOUSE NEWS SERVICE

BOSTON - Legally mandated paid sick days for workers would stamp out billions of dollars worth of productivity and potentially 16,000 jobs over five years, according to a new report issued by a small-business advocacy group that has long opposed legislation that would guarantee Massachusetts employees up to a week of sick time.

The report, issued by the National Federation of Independent Business, estimates that 1.3 million Massachusetts workers lack guaranteed paid sick time out of a workforce of nearly 3 million. The NFIB Research Foundation issued the report, the latest salvo in a public policy battle that has drawn intense interest but little legislative action in recent years.

The legislation would impose a mandate allowing employees to accrue paid sick time depending on the number of hours they work, but makes no exceptions for small firms and would cover temporary and part-time employees, according to the report, which estimates that a quarter of the job losses would hit firms with between 20 and 99 employees.

The issue of providing guaranteed paid sick time has floundered for years on Beacon Hill. Backers, including Gov. Deval Patrick and dozens of lawmakers, have argued that paid sick days would actually enhance productivity by guaranteeing recovery time for ill workers and lessening the likelihood that they’ll show up to work with a contagious condition. Some of those supporters ripped the NFIB’s report.

“In these tough economic times, no one should have to lose income -- or worse, lose their job -- because they get sick, but it happens all the time. Paid sick days is a commonsense measure that will help get our economy moving again by making sure hardworking men and women can hold onto their jobs, support their families and sustain local businesses,” said Elizabeth Toulan, coordinator of the Massachusetts Paid Sick Leave coalition. “Business owners across the state support paid sick days because it’s a good policy for their workers, their customers and their bottom lines. The NFIB is a corporate lobby that continues to show it is out of touch with business and the economy in Massachusetts.”

According to the report, an increase in worker absences as a result of the new paid sick day benefit would translate to lost sales and production.

“The financial loss from this increase can be material and is an important consequence of the proposed legislation,” the report concludes.

The report also concludes that a statewide mandate would result in new costs to taxpayers, as government would likely be tasked with policing and enforcing the mandate.

“Small firms would bear two-thirds of the job losses and more than half of lost sales,” the report concludes. “Although the state unemployment rate has gradually fallen … job creation remains a priority and policymakers would do well to bear in mind the potential negative effects to employment and production that employer mandates can have.”

But backers of the bill say it would save hundreds of millions of dollars a year by reducing employee turnover, slowing the spread of contagious illnesses in the workplace and increasing worker productivity.

Paid sick day advocates also note that they’re important to enable family members to care for sick children or other relatives, and they can be used by employees who are dealing with domestic violence or abuse.

Last year, Gov. Patrick’s secretary of labor, Joanne Goldstein, called paid sick days a “basic right” and rejected claims that businesses should be allowed to decide for themselves.

“All those who oppose these bills themselves enjoy sick days, probably more than the bill provides for,” she said, acknowledging what she said was a presumption, at a public hearing on the legislation. “To me there's some disconnect in fighting against something that you yourself enjoy and take advantage of. I would challenge all of you to find some folks who would say, 'We think this is such a bad idea … we're willing to forgo it.’”

Goldstein backed identical bills (H 1398 / S 930) offered by Sen. Patricia Jehlen (D-Somerville) and Rep. Kay Khan (D-Newton) that would enable workers in Massachusetts who currently lack paid sick days to earn an hour of paid sick time for every 30 hours worked and up to seven days per year. The bills, the subject of a public hearing last July, are sponsored by 43 House Democrats, 13 Senate Democrats, and one Senate Republican.